In January 2011, the Borough of Quakertown along with Quakertown Community School District and the County of Bucks adopted ordinances to provice for a beneficial investment incentive for targeted deteriorated areas of the Borough of Quakertown.
The Local Economic Revitalization Tax Assistance (LERTA) Program provides a graduated abatement on real estate taxes for companies that make improvements to property within the LERTA district. As an example of a typical LERTA project, a building is built on a vacant parcel of ground (which has a baseline tax assessment of "X"). As a result of the improvements, the real estate tax assessment on the parcel of ground will now include the new building, and the assessment is increased from "X" to "Y". The LERTA program provides an abatement on the difference between "X" and "Y" over a period of 5 - 10 years. At the end of the abatement period, the property owner pays the full amount of taxes due on the improved property.
Any property owner, who does not have a tax delinquency on any property located within the Borough of Quakertown, undertaking a project within the deteriorated area which is qualified as a construction or reconstruction or improvement(s) project may apply for and receive from the Borough an exemption from Borough real property taxes due to the increased or additional assessed valuation attributable to construction or reconstruction or improvement(s), in the amounts and in accordance with the provisions and limitations set forth in this Part 5. The exemption from Borough real estate taxes shall be specifically limited to the additional assessed valuation attributable to the actual costs of the construction or reconstruction or improvement(s) to the property within the deteriorated area.